The Public Company Accounting Oversight Board (PCAOB) sanctioned three audit firms for failing to file required forms.
The documents in question are Form APs. Registered audit firms are required to submit Form AP, Auditor Reporting of Certain Audit Participants, to disclose the names of engagement partners and other accounting firms that participated in their audits of public companies. The PCAOB adopted the rule to improve transparency regarding the engagement partner and other accounting firms that took part in the audit. Failure to file Form APs on time is a violation of PCAOB Rule 3211.
The three firms charged are Olayinka Oyebola & Co., which consented to a $90,000 civil money penalty and censure; Victor Mokuolu, CPA PLLC, which consented to a $30,000 civil money penalty and censure; and MAH & Associates, LLP, which agreed to a $25,000 civil money penalty and censure.
In addition, each firm agreed to undertake remedial measures to establish policies and procedures directed toward ensuring future compliance with PCAOB reporting requirements. All three firms have now filed the Form APs in question.
“Investors and the public rely on Form AP disclosures to understand exactly who has a hand in the audits of public companies. Timely disclosure is critical for transparency and accountability in our capital markets, and the PCAOB will be vigilant in enforcing disclosure rules,” PCAOB Chair Erica Y. Williams said.
The violations were found during a sweep, which enables the PCAOB to collect information on potential violations from a number of firms at the same time.
“These enforcement actions make clear the importance of timely filing Form APs in order to provide investors with information they need to make informed decisions,” Robert E. Rice, director of the PCAOB’s Division of Enforcement and Investigations, said.
Sina Mansouri, Kristina Shin, and Dave Eccard conducted the investigations for PCAOB, supervised by Kyra C. Armstrong.
The PCAOB oversees auditors’ compliance with the Sarbanes-Oxley Act, provisions of the securities laws relating to auditing, professional standards, and PCAOB and SEC rules.